PIRATES OF THE CZECH REPUBLIC: MINISTRY WILL

UNCLAS PRAGUE 000849 SIPDIS SENSITIVE SIPDIS STATE FOR EUR/NCE AND EB/IPE JBOGER STATE PASS USTR FOR JCHOE-GROVES AND WMOORE COMMERCE FOR 4232/ITA/MAC/MROGERS COMMERCE PASS USPTO E.O. 12958: N/A TAGS: KIPR ETRD ECON EZ SUBJECT: PIRATES OF THE CZECH REPUBLIC: MINISTRY WILL PRESENT IPR ACTION PLAN TO GOVERNMENT IN SEPTEMBER REF: A. PRAGUE 742 ¶B. PRAGUE 578 ¶C. PRAGUE 457 ¶1. (SBU) SUMMARY: The Ambassador met with Deputy Minister of Industry and Trade Martin Tlapa on July 17 to underscore the need for a Czech action plan to combat intellectual property piracy at Czech border markets. The Ambassador reminded Tlapa of the upcoming Special 301 Off-cycle Review (OCR) in October and said the USG was looking for both an IPR action plan and tangible steps to resolve the problem. Tlapa said the Ministry has a draft action plan, which incorporates the USG-suggested action plan provided in May. The ultimate goal of the Czech action plan is to shut down the stalls selling pirated goods. Tlapa noted that this action plan would not be presented for government approval until the second half of September. End summary. ¶2. (SBU) EU Department Director Ladislava Votavova, who chairs the IPR inter-ministerial committee and accompanied Tlapa in the meeting with the Ambassador, will present the proposed action plan to Minister of Industry and Trade Riman for approval the week of July 23. Given the summer holiday season, however, Tlapa does not expect the plan to be presented to the government for approval until the second half of September. Tlapa said he was hopeful that the proposed action plan would be approved by both Minister Riman and the government. ¶3. (SBU) The Czech action plan contains four main proposals developed by the inter-ministerial committee on IPR issues (REF A). The key proposal of the four-point action plan is to determine the fastest legal route to completely halt sales of DVD/CDs in open-air stalls. This proposal is similar to existing prohibitions on the sale of alcohol and tobacco products at the stalls, and could make it difficult for vendors to sell pirated audio and video recordings. The plan also recommends increasing the frequency of raids at border markets, providing a training program for judges on IPR issues and fast-tracking legislation to increase the penalties for vendors who sell pirated materials. (Note: Post does not have this action plan. This was verbally conveyed only. End note.) ¶4. (SBU) The Ambassador said he supported the proposals mentioned, and asked that any tangible implementation steps, such as a public statement condemning IPR piracy in the Czech Republic, be taken as soon as possible. He provided Tlapa with a list of reasons why being on the Watch List could negatively affect the Czech Republic and expressed Post's willingness to engage other Ministries to gain support for the Czech action plan. Tlapa noted that solving the problem involved coordination among a number of Ministries and said he might ask the Ambassador to help raise awareness of the issue with other Ministers in the future. ¶5. (SBU) COMMENT: Tlapa and Votavova clearly understand USG and industry concerns about piracy at the open-air markets and the Special 301 OCR deadline. The acceptance of some of the points of the suggested U.S. IPR action plan, "using almost your words" according to Tlapa, is a strong signal, along with the proposal to shut down pirate vendors at the border markets. The anticipated delay in approving an official action plan appears to be due to the difficulties of inter-ministerial coordination during the summer holiday season, when there are few bodies in European government ministries. However, the late-September timeframe for presentation of the plan to government does not leave much time to make real progress before the OCR. The Ambassador made that clear, and Tlapa understands that September is likely too late. The Ambassador will engage with other critical Ministries (Interior, Justice, Culture) on IPR issues to increase awareness and support for the proposed Czech action plan. End comment. GRABER